SG Mart Ltd: ₹5,456 Cr Sales, 2,500 SKUs, and One Big Bazaar on Steroids
1. At a Glance
SG Mart is that cousin who used to sell solar panels as Kintech Renewables and then suddenly turned into a B2B supermarket for builders. With 2,500+ SKUs (yes, more than your neighborhood D-Mart), warehouses across India, and a customer base that jumped from 170 to 800 in a year, they’re basically Amazon for cement, tiles, and wires. Oh, and in true Bollywood style, the Gupta family of APL Apollo fame swooped in with an open offer at ₹450, because why not keep all the steel money in the family?
2. Introduction
Imagine walking into a hypermarket where instead of Maggi and Coke, you pick up TMT rebars, bath fittings, laminates, and a side of LED lights. That’s SG Mart for you — a one-stop B2B “Big Bazaar on steroids” for contractors, builders, and everyone who thinks Home Depot is too fancy.
The company rebranded itself from Kintech Renewables Ltd (yes, a company once about renewable energy) into a construction supermarket. Because in India, pivots are not “strategy” — they’re survival.
FY24 was their first real operational year, yet they’ve already bagged orders worth ₹5,456 Cr in FY25. Growth rate? Astronomical. But margins? Thinner than a papad. They’re running on ~1.6% OPM, which is basically like selling cement at cost and hoping volume makes up for it.
Throw in a ₹600 Cr capex plan to scale capacity from 0.6 to 2.5 million tonnes by FY27, and you’ve got yourself a startup-meets-PSU hybrid story. Investors are intrigued, auditors are nervous, and builders are thrilled.
3. Business Model (WTF Do They Even Do?)
SG Mart is essentially Flipkart for builders, but offline warehouses instead of a mobile app addiction.
Here’s their circus tent:
Steel Division: TMT bars, HR sheets, welding rods, mesh nets, binding wire — basically anything that can rust.
Building Materials: Cement, tiles, laminates, paints, bath fittings — the contractor’s wishlist.
Electricals & Appliances: Fans, water heaters, LED lighting, modular switches, cables. Yes, your bathroom geyser and your cement can now come from the same invoice.
Upcoming Add-ons: ISMB beams, ISMC channels, Patti flats — heavy steel stuff, because if you can sell screws, why not bridges?
They call themselves a “tech-enabled B2B platform”, which is corporate lingo for “we made a website and a PowerPoint.”
Customer base grew from 170 in Q1 FY24 to 800+ in Q1 FY25. Supplier tie-ups include JSW, Jindal Steel, Kajaria, Havells, Hindustan Zinc — aka the Avengers of construction.
So yes, the business is simple: Buy in bulk, sell in bulk, survive on wafer-thin margins, and raise more money to keep the flywheel going.
4. Financials Overview
Quarterly Performance (Q1 FY25 vs Q1 FY24 vs Q4 FY24)
Source table
Metric
Latest Qtr (Q1 FY25)
YoY Qtr (Q1 FY24)
Prev Qtr (Q4 FY24)
YoY %
QoQ %
Revenue
₹1,037 Cr
₹151 Cr
₹1,350 Cr
+586%
-23%
EBITDA
₹30 Cr
₹2 Cr
₹25 Cr
+1,400%
+20%
PAT
₹29.3 Cr
₹1 Cr
₹22 Cr
+2,830%
+33%
EPS (₹)
2.33
0.64
1.98
+264%
+18%
Commentary:
Revenue growth YoY looks like IPL team valuations, but QoQ slump (-23%) shows that Q1 was a “dry” quarter.
PAT margin ~2.8% — better than last year, but still pocket change compared to FMCG.
EPS annualized = ₹2.33 × 4 = ₹9.32. At CMP ₹345, P/E recalculated = 37x (not Screener’s 45x). Still expensive for a cement bazaar.
5. Valuation (Fair Value RANGE only)
P/E Method: Peer median P/E ~30x (NBCC, KEC, Kalpataru). Apply on EPS ₹9.3 → FV range ₹280–₹310.
EV/EBITDA Method: FY25 EBITDA ~₹129 Cr. Sector EV/EBITDA ~15x. SG Mart EV ~₹4,019 Cr / EBITDA 129 = 31x (too high). Fair EV at 15x = ₹1,935 Cr → FV range ₹150–₹180.
DCF (rough): Assume 40% CAGR revenue till FY27, OPM at 3%. Discount 12%. Intrinsic ~₹300–₹320.
Final FV Range (Educational Only): ₹180 – ₹320. Disclaimer: This FV range is for educational purposes
